Times Electric(SH:688187)2024-07-18 07:30Investment Rating - The report maintains a "Recommended" rating for the company [1]. Core Views - The company is expected to achieve a net profit of 1.507 billion yuan in the first half of 2024, representing a year-on-year growth of 30.56%, and a non-recurring net profit of 1.268 billion yuan, with a year-on-year increase of 36.50% [1]. - The rapid growth in performance is attributed to the recovery in downstream industry demand, particularly in rail investment and the resurgence of passenger traffic, which has led to increased acceptance and delivery of rail transit products [1]. - The company is well-positioned to benefit from high railway investment levels, with fixed asset investment reaching 337.3 billion yuan in the first half of 2024, a year-on-year increase of 10.6% [1]. - The emerging equipment business, particularly power semiconductors, is expected to continue its rapid growth, contributing approximately 35% to the revenue of the emerging equipment segment [1]. Financial Performance Summary - The company forecasts revenue of 26.563 billion yuan for 2024, with a growth rate of 21.85% [4]. - The projected net profit for 2024 is 3.829 billion yuan, reflecting a profit growth rate of 23.28% [4]. - The gross profit margin is expected to be 33.98% in 2024, slightly improving from 33.86% in 2023 [4]. - Earnings per share (EPS) are projected to be 2.71 yuan for 2024, with a price-to-earnings (PE) ratio of 18.41 [4]. Business Growth Drivers - The company is expected to benefit from ongoing high demand for rail transit equipment, supported by government initiatives for large-scale equipment upgrades and the replacement of old diesel locomotives with new energy locomotives [1]. - The power semiconductor sector is anticipated to see a price increase and a recovery in downstream demand, particularly in consumer electronics and automotive electronics, which will drive growth in this segment [1]. - The company has established production bases for various semiconductor devices, which are expected to ramp up capacity and contribute to revenue growth [1].